Summary
Figma closed the second quarter of fiscal 2026 with revenue of $370.1 million, up 48% from the prior-year quarter. Management described it as the third straight quarter of accelerating year-over-year growth. Year-to-date revenue was $703.5 million, up 47.2%. Gross profit rose 40% to $309.6 million, but gross margin fell to 83.7%, down 5.2 percentage points from 88.8% in the prior-year quarter. Non-GAAP gross margin was 85%. The company said the quarter was its first full period of AI credit monetization.
The bottom line moved sharply the other way. The GAAP operating loss was $117.3 million, a swing from operating income of $2.1 million a year earlier, and operating margin was -31.7%, compared with 0.8%. GAAP net loss was $112.2 million versus net income of $28.2 million in the prior-year quarter. Diluted loss per share was $0.21. For the six months, net loss was $254.6 million versus net income of $73.1 million. Operating expenses grew faster than revenue, driven by employee-related costs. Stock-based compensation, net of amounts capitalized, was $147.6 million in the quarter, with much of it tied to equity awards that began vesting after the July 2025 IPO. On a non-GAAP basis, operating income was $36.1 million at a 10% margin, and non-GAAP net income was $42.6 million, or $0.08 per diluted share.
Cash generation held roughly steady. Operating cash flow was $60.9 million, down 2.5% year over year. Free cash flow, a non-GAAP measure that subtracts capital expenditures and capitalized internal-use software costs, was $53.2 million at a 14% margin. Capital expenditures rose 489.8% to $6.7 million. Year-to-date operating cash flow was $158.2 million, down 0.9%, and it absorbed a $56.1 million payment under the annual corporate bonus program with no comparable outlay a year earlier. Deferred revenue ended the quarter at $626.8 million, up 44.7%, and remaining performance obligations were $687.0 million, up 53.1%.
Customer metrics stayed strong. Net Dollar Retention Rate was 136% as of June 30, 2026, up from 129% a year earlier. Paid customers spending more than $10,000 in ARR totaled 15,964, up 34%, and those spending more than $100,000 reached 1,635, up 46%. More than 80% of the larger cohort consumed AI credits weekly, and as of July 31, 2026 more than 50% were using the Figma agent weekly. Product news centered on Code Layers, which brings Figma Make to the design canvas, and new creative tools for motion, shaders and 3D transforms. The quarter also included Config, the annual user conference, which lifted sales and marketing spend.
Guidance points to slower growth ahead. For the third quarter of fiscal 2026, Figma guided revenue to $373.0 million to $375.0 million, implying 36% year-over-year growth at the midpoint. For the full fiscal year 2026, revenue guidance is $1.463 billion to $1.467 billion, implying 39% growth at the midpoint and a $40.0 million raise to the prior outlook. Full-year non-GAAP operating income is guided to $125.0 million to $135.0 million, a 9% non-GAAP operating margin at the midpoint.
Costs are the main risk. Management expects AI inference and model training spend to weigh on gross margin and operating margin, and it says those costs may fluctuate as it manages usage. Technical infrastructure and hosting costs related to AI rose by $27.1 million in the quarter. Other income, net fell 79%, largely on a $26.5 million unfavorable swing in the fair value of equity securities. Figma also carries a full valuation allowance against its deferred tax assets and notes that future capital needs could require outside financing. Cash, cash equivalents and marketable securities were $1.7 billion as of June 30, 2026, and the $500.0 million revolving credit facility was undrawn.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $370.1M | $333.4M | +11.0% | $249.6M | +48.2% |
| Gross profit | $309.6M | $264.8M | +16.9% | $221.8M | +39.6% |
| Gross margin | 83.7% | 79.4% | +4.3 pp | 88.8% | -5.2 pp |
| Research & development | $167.3M | $173.0M | -3.3% | $83.1M | +101.5% |
| Sales & marketing | $154.9M | $125.6M | +23.3% | $97.7M | +58.5% |
| General & administrative | $104.7M | $103.6M | +1.0% | $38.9M | +169.0% |
| Total operating expenses | $426.9M | $402.2M | +6.1% | $219.7M | +94.3% |
| Operating income (loss) | -$117.3M | -$137.4M | +14.6% | $2.1M | -5749.8% |
| Operating margin | -31.7% | -41.2% | +9.5 pp | 0.8% | -32.5 pp |
| Net income (loss) | -$112.2M | -$142.4M | +21.2% | $28.2M | -497.3% |
| Net margin | -30.3% | -42.7% | +12.4 pp | 11.3% | -41.6 pp |
| Diluted EPS | -$0.21 | -$0.27 | +$0.06 | $0.00 | -$0.21 |
| Net retention rate | 136.0% | 139.0% | -3.0 pp | — | — |
Risks
AI could reduce demand for paid seats as customers consolidate workflows into AI agents or reduce design and engineering headcount, and the filing states its seat-based subscription model may become less aligned with customer value creation as AI automates work. The filing also states AI may make aspects of the platform obsolete or decrease the number of designers, developers, and collaborators using it.
Starting in March 2026, Figma began enforcing AI credit limits and introduced monthly AI credit add-ons or pay-as-you-go usage, and the filing states it observed elevated customer support volume, customer dissatisfaction expressed through public and social channels, and reduced usage by certain customers. It may experience further dissatisfaction, dispute resolution costs, or customer churn.
AI investments and use of AI technologies, including Figma Make, are expected to negatively impact gross margins and operating margins in the short term. For the quarter ended June 30, 2026, gross margin was 83.7%, down 5.2 pp from 88.8%, and operating margin was -31.7%, down 32.5 pp from 0.8%, with operating income swinging to a loss of $117.3 million.
In March 2026, Figma introduced third-party AI agents that can create and modify real design assets directly in Figma files through its MCP server, and the filing warns such agents may reduce paid seats, circumvent pricing and packaging controls, increase platform load, and create fraud and abuse risk. External agents using a single authenticated session may make seat-based pricing, billing, and administrative controls less effective.
AI products and features depend on a limited number of third-party model providers that may simultaneously offer competing products, seek to intermediate end-user relationships, change economic terms, or limit access. If providers impose usage restrictions, experience outages, or face capacity constraints, AI features may be delayed, degraded, or unavailable.
Figma faces intense competition from larger platform providers, model providers, AI-native companies, and well-capitalized startups that may offer AI functionality at very low prices, bundle it into broader offerings, or subsidize usage. Such practices may condition customers to expect AI functionality at low or no incremental cost and pressure Figma's pricing and margins.
The Extended Lock-Up Period is expected to terminate at the commencement of trading on August 7, 2026, releasing approximately 77.7 million shares held by Extended Lock-Up Holders. Sales of a substantial number of these shares, or the perception that such sales may occur, could cause the market price of Class A common stock to fall.
Figma states it expects its Net Dollar Retention Rate to fluctuate or decline in the future as its revenue base grows and as pricing and packaging change, even though NDR was 136% as of June 30, 2026 compared with 129% as of June 30, 2025. It also expects its revenue growth rate to decline as the business matures.
Credit-based, usage-based, or outcome-based billing models may increase billing disputes, reduced collectibility, refunds, chargebacks, and regulatory scrutiny, including under consumer protection, subscription, auto-renewal, or unfair competition laws. Customers may also assert claims that disclosures, user interfaces, or billing practices were misleading or unfair.
Figma holds Bitcoin and a Bitcoin exchange traded fund, and changes in their market value can cause significant swings in other income. Other income, net decreased 79% for the quarter ended June 30, 2026 and 93% for the six months ended June 30, 2026, partly due to a shift from unrealized gains to unrealized losses on the Bitcoin ETF and a $5.0 million remeasurement loss on its Bitcoin investment.
As of June 30, 2026, Mr. Field held approximately 70.8% of the voting power of outstanding capital stock, including 20.7% subject to the Wallace Proxy, allowing him to control matters submitted to stockholders. This concentrated control may delay, prevent, or deter a change in control and may conflict with other stockholders' interests.
As of June 30, 2026, stock options and RSUs outstanding could result in issuance of 5,643,150 shares of Class A common stock and 65,483,635 shares of Class A common stock, respectively, plus 26,581,453 shares of Class B common stock upon RSU settlement. The board's settlement practice may use sell-to-cover sales or net settlement, causing dilution or significant cash expenditures.
SaaS KPIs
All quarters →Free Cash Flow Margin
Net Dollar Retention Rate
Free Cash Flow
Non-GAAP Operating Margin
Paid Customers with more than $10,000 in ARR
Paid Customers with more than $100,000 in ARR
Non-GAAP Operating Income
Summary, forecast, risks and KPIs are extracted from Figma, Inc.'s SEC filings for Q2 FY2026 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Sep 24, 2026.